According to the Leading Indicator of Remodeling Activity (LIRA) recently released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, annual spending growth for home improvement projects will accelerate to 4.0% by the first quarter of 2016.
One major driver behind the anticipated growth in remodeling spending is the recent pick up in home sales activity, says Chris Herbert, managing director of the Joint Center. “Recent homebuyers typically spend about a third more on home improvements than non-movers, even after controlling for any age or income differences, so increasing sales this year should translate to stronger improvement spending gains next year,” he says.
Other signs that the remodeling market is gaining momentum is “sustained growth in retail sales of home improvement products and ongoing gains in house prices across much of the country,” says Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center.
